JBL Says CEO Main to Leave in March; UBS Says Buy, $25 Target

By Tiernan Ray

Contract electronics manufacturer Jabil Circuit (JBL) this morning said its chief executive of 12 years, Tim Main, will step down in March of next year, yielding the role to Mark Mondello, its COO.

Main said Jabil “is in a strong position and it is the right time for an orderly and progressive leadership transition” and called Mondello “a proven leader with the vision, energy and drive to lead Jabil to even greater success.”

In a note to clients this morning, UBS’s Amitabh Passi reiterates a Buy rating on Jabil shares, and a $25 price target, writing that while the departure of Main marks “the end of an era,” nevertheless, “we don’t foresee any major operational changes” and that the company “remains an industry leader.”

Main has been with the company 25 years and while he was CEO, Jabil went from $3.5 billion to more than $17 billion in revenue, notes Passi.

Jabil shares are down 22 cents, or 1.2%, at $17.50. Jabil competes with a number of manufacturers, including Sanmina-SCI (SANM), Plexus (PLXS), Flextronics (FLEX), and Celestica (CLS).

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.